03/22/2011

Revised Town budget eyes higher franchise fee revenue, more per gallon for heating and other fuel

The Town Council Finance Committee has completed its review of the municipal portion of the fiscal 2012 proposed budget.

The "if needed" April 4, 2011 meeting of the Finance Committee has been canceled.

Cable franchise fee revenue to offset higher budgets for fuel

Town Manager Michael McGovern reported increases in anticipated revenues, namely franchise fees from Time-Warner cable, and increased budgets for fuel and heating oil. The resulting tax-rate increase for municipal services however remains at 5 cents, or 1.2 percent.

At their final Town budget review session March 21, the Finance Committee revised revenue estimates to provide $20,000 additional estimated revenue from the cable television franchise fee. The annual check received for the current year was higher than anticipated.

The Finance Committee also agreed that motor fuels (gasoline and diesel fuel) and heating oil accounts should be revised to better reflect current conditions. The revised budget spreadsheet provides funding for energy related accounts at $3.25 per gallon instead of $3. This added a total of $18,377 to 20 different accounts where these items are budgeted.

Planning for future library needs

The Finance Committee also split a proposed $100,000 expenditure for library maintenance into $50,000 for crucial maintenance; and, $50,000 to a reserve account to be spent, with later Town Council authorization, for work related to the design and construction of a library for the 21st Century.

The net effect of the Finance Committee review is a reduction of $1,623 in the proposed net-to-taxes. The tax rate increase is unchanged from the Town budget first proposed in February.

The Finance Committee will next meet on Wednesday, April 6, 2011 at 7:30 p.m. at Town Hall to begin review of the school budget.